Loan Type

The Type of Loan You Get is Important!

Welcome to the world of student loans! It can be confusing, and the stakes are high. Almost 70% of American college students will need student loans to finance their post-secondary education, and most of those will need multiple loans. The average college student graduates with around $20,000 of debt, and that is just for undergraduate studies. Graduate and professional studies can easily add another $100,000 to that total. A huge amount of debt that comes with a high or changeable interest and inflexible repayment or deferment terms can put a graduate’s financial future in jeopardy. So it is essential that students make informed, rational decisions about what kind of loans they get and how they manage them.

Some Types of Loans

In broad terms, there are two types of student loans: Those from a government source, and those from a private lender.

Federal government loans can be subsidized or unsubsidized. Federal loans can also be needs-based or needs-blind. Most Federal loans do not require a credit check, but a couple do. There are loans for students to take out for themselves, and loans for parents to take out.

Private loans always require a credit check. There are private loans for tuition and other standard  expenses, but there are also loans  for Americans who want to study abroad, and there are loans for international students who want to study in the United States. There are loans for people who want to go to trade school and flight school, and there are loans for single parents who want to get back to their own education. This section will take you through all these loans, and give you the information you need to decide which loan is best for you and your future.